Robert Kiyosaki: 6 Ways To Survive a Market Crash

Robert Kiyosaki: 6 Ways To Survive a Market Crash

G. Brian Davis November 29, 2024  GOBankingRates

In 2024, “Rich Dad, Poor Dad” author Robert Kiyosaki posted on X that he sees a market crash looming on the horizon. “Good news: Crashes are the best time to get rich. Bargains will float to the surface.”

He went on to outline six tips for not just surviving a market crash, but coming out ahead when the dust settles.

Don’t Buy on the Downward Crash

Kiyosaki reiterated a common expression in the investment industry: Don’t try to catch a falling knife. “Just because prices are falling, do not get greedy. Wait until prices have bottomed and no one wants the asset you want.”

Of course, it’s not easy to tell when the market has reached the bottom. But one way to spot it is looking for a sudden upward trend in transaction volume, after a period of relatively stable volume through the crash. Buyers start coming out of the woodwork, while sellers have declined.

You can also look at the stock market volatility index VIX. The index spikes during market crashes, but when it reaches its peak and starts coming down again, it can indicate that a market has reached its bottom.

Study Investing (and Investments)

“YouTube is a great source for real and fake teachers,” Kiyosaki wrote. “Invest time to get into the head of the teacher.”

Learn the fundamentals of your investing strategy of choice. If you want to pick individual stocks, learn fundamental analysis. If you want to invest passively in real estate syndications, learn how to analyze them for risk.

Once you learn the basics of investing in your chosen strategy, you can then turn your focus to studying specific investments or deals. That could mean specific stocks, ETFs, rental properties, passive real estate investments, precious metals, cryptocurrencies or any other type of asset.

Of course, the internet is flooded with bad advice, too, which means your first order of business must be to identify great sources for education.

Choose Great Teachers

Kiyosaki offered a few starting points for people he likes learning from for specific assets: “My real real estate teacher is Ken McElroy. Taxes: Tom Wheelwright. Stocks: John MacGregor. Oil:  Mike Maucelli.”

Plenty of great educators exist in the space — and so do many charlatans.

“Be very careful who influences your brain, your attitude and your spirit,” Kiyosaki wrote.

Surround Yourself With Successful People

TO READ MORE:  https://www.yahoo.com/finance/news/robert-kiyosaki-6-ways-survive-220025218.html

How To Create a ‘Splurge’ Fund To Avoid Debt and Regret

How To Create a ‘Splurge’ Fund To Avoid Debt and Regret

Brooke Barley   Thu, November 28, 2024  GOBankingRates

Many people think a budget means there is no room for fun purchases, but that’s not the case. There are ways to spend money on enjoyable experiences without going overboard.

Here’s how to budget the smart way while still making sure to leave room for splurges, according to financial experts.

Track Spending

The first step to creating a “splurge” fund is to know exactly where your money is going.

Julie Guntrip, the head of financial wellness at Jenius Bank, suggested setting up a budget with three different priorities: needs, wants — aka the splurge fund — and savings. Once these are tracked for a month, Guntrip explained, patterns will emerge and will help dictate how much there is to spend on wants.

“This practice could provide an opportunity to spot patterns in discretionary spending and rethink them. This information could motivate you to adjust your behavior and be more intentional in your discretionary purchases so that you skip the meaningless extras and focus your resources on the things that bring you the most joy,” she said. Financial wellness is about balance — being able to indulge in the moment and still work toward growing your wealth and securing your future.”

Define Needs and Wants

In order to track what’s absolutely necessary and what’s discretionary, Guntrip suggested labeling each expenditure.

TO READ MORE:  https://www.yahoo.com/finance/news/create-splurge-fund-avoid-debt-220009697.html

Over Half Of US States Are Bleeding Cash And Going Broke

Over Half Of US States Are Bleeding Cash And Going Broke, Researchers Say — Here's Why And What It Means For You

Christy Bieber  Thu, November 28, 2024  Moneywise

Across the country, states aren't doing very well with their budgets. In fact, 27 U.S. states didn't have the money to pay their bills as of the end of fiscal year 2023, according to nonpartisan think tank Truth in Accounting. Connecticut, New Jersey, Illinois and Massachusetts faced the biggest shortfalls per taxpayer.

"There are certainly tremendous challenges going forward," Oliver Giesecke, a research fellow at the Hoover Institution at Stanford University, told CNBC in a report published Nov. 4.

There are several reasons why states might be struggling, but what it means for citizens is there's a very real risk of tax hikes and cuts to public services and benefits programs.

Here's what you need to know about the financial trouble states are finding themselves in — along with how this could impact you.

Federal Aid

Some states suffer from budgeting problems that were previously masked by federal assistance during the COVID-19 pandemic, according to The Pew Charitable Trusts.

During the pandemic, the federal government significantly stepped up the money it was giving to states, totaling $800-plus billion, per the organization. This made it affordable for states to cut taxes and increase spending for a time.

"What we're seeing is largely a return to Earth from those pandemic surpluses," Justin Theal, a senior officer with The Pew Charitable Trusts, told CNBC. "A huge looming question out there is around the long-term affordability of the tax cuts and spending increases that were enacted."

The federal funds will dry up in 2026, according to the broadcaster, as much of the country is being hit by a cost-of-living crisis. Some state leaders are considering tax relief for this reason, which means some government programs could face big cuts.

State Pensions

The largest contributor to state debt at the end of fiscal year 2023 was unfunded retirement liabilities, Truth in Accounting reports. Around 86% of state and local government workers had access to a pension plan as of March 2022, according to the Bureau of Labor Statistics.

TO READ MORE:  https://www.yahoo.com/finance/news/over-half-us-states-bleeding-114400264.html

The 10 Golden Rules Of Investing Everyone Should Follow

The 10 Golden Rules Of Investing Everyone Should Follow

James Royal, Ph.D.  Tue, November 26, 2024 Bankrate

Investing can often be broken down into a few simple rules that investors can follow to be successful. But success can be as much about what to do as it is what not to do. On top of that, our emotions throw a wrench into the whole process. While everyone knows you need to “buy low and sell high,” our temperament often leads us to selling low and buying high.

So it’s key to develop a set of “golden rules” to help guide you through the tough times. Anyone can make money when the market is rising. But when the market gets choppy, investors who succeed and thrive are those who have a long-term plan that works.

Here are 10 golden rules of investing to follow to make you a more successful — and hopefully wealthy — investor.

Rule No. 1 — Never lose money

Let’s kick it off with some timeless advice from legendary investor Warren Buffett, who said, “Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.” The Oracle of Omaha’s advice stresses the importance of avoiding loss in your portfolio. When you have more money in your portfolio, you can make more money on it. So, a loss hurts your future earning power.

Of course, it’s easy to say not to lose money. What Buffett’s rule essentially means is don’t become enchanted with an investment’s potential gains, but also look for its downsides. If you don’t get enough upside for the risks you’re taking, the investment may not be worth it. Focus on the downside first, counsels Buffett.

Rule No. 2 — Think like an owner

“Think like an owner,” says Chris Graff, co-chief investment officer at RMB Capital. “Remember that you are investing in businesses, not just stocks.”

While many investors treat stocks like gambling, real businesses stand behind those stocks. Stocks are a fractional ownership interest in a business, and as the business performs well or poorly over time, the company’s stock is likely to follow the direction of its profitability.

“Be aware of your motivation when investing,” says Christopher Mizer, CEO of Vivaris Capital in La Jolla, California. “Are you investing or gambling? Investing involves an analysis of fundamentals, valuation, and an opinion about how the business will perform in the future.”

“Make sure the management team is strong and aligned with the interests of shareholders, and that the company is in a strong financial and competitive position,” says Graff.

Rule No. 3 — Stick to your process

Experts advise investors to develop an investing process that works for them in good times and bad and then stick to that process. If you’re an investor who wants to dig into the details and you have the time to do so, then use that strength. If you’d prefer to not worry about investing so much or don’t have the time, then index funds could be a great option and deliver attractive returns. Either way, stick close to a process that works for you.

One of the best strategies for investors: a long-term buy-and-hold approach. You can buy stock funds regularly in a 401(k), for example, and then hold on for decades. But it can be easy when the market gets volatile to deviate from your plan because you’re temporarily losing money. Don’t do it.

Rule No. 4 — Buy when everyone is fearful

When the market is down, investors often sell or simply quit paying attention to it. But that’s when the bargains are out in droves. It’s true: the stock market is the only market where the goods go on sale and everyone is too afraid to buy. As Buffett has famously said, “Be fearful when others are greedy, and greedy when others are fearful.”

TO READ MORE:  https://www.yahoo.com/finance/news/10-golden-rules-investing-everyone-221036688.html

Warren Buffett Issues A Warning Ahead Of The $84 Trillion Great Wealth Transfer

Warren Buffett Issues A Warning For All Parents Ahead Of The $84 Trillion Great Wealth Transfer

Chloe Berger  Updated Tue, November 26, 2024  Fortune

Planning your will could make or break your family after your death, warns Berkshire Hathaway CEO and legendary investor Warren Buffett.

"Father time always wins. But he can be fickle,” the 94-year-old billionaire noted in an unusually candid letter released on Monday.

Conversations addressing one’s own death can be a difficult subject to broach. The logistics of what happens to our money and belongings can be an equally dreaded task. But ahead of the $84 trillion Great Wealth Transfer, Buffett asserts that there’s no sense in delaying the uncomfortable and risking future conflicts down the line.

Buffett’s Advice For Parents

As one of the richest people in the world, Buffett is currently worth more than $151 billion. He has voiced his plans for his massive nest egg, pledging in 2010 (alongside Bill Gates and Melinda French Gates) to give at least half of his fortune to charity before his death.

That’s all to say, Buffett’s riches and ensuing estate planning probably seem outside the realm of possibility for most of us. But while Buffett chips away and distributes his massive wealth, he appears to have found advice that’s applicable to more than just billionaires.

“I have one further suggestion for all parents, whether they are of modest or staggering wealth. When your children are mature, have them read your will before you sign it,” he wrote.

Your will should be a dialogue, in the eyes of Buffett. He suggests that parents make sure their children understand “both the logic for your decisions and the responsibilities they will encounter upon your death.” Then a benefactor should answer said questions or concerns, “listen carefully, and adopt those found sensible.”

Buffett admits to doing as much with his kids over the years, and hearing their feedback and suggestions. “There is nothing wrong with my having to defend my thoughts. My dad did the same with me,” he explained.

Many Americans treat money as a taboo topic within their families, but they don’t feel better off for it. Most (56%) say their parents never spoke of money with them, though a striking 81% believe that they would have benefited from having financial education at an earlier age, according to the Fidelity Investments State of Wealth Mobility survey.

Plagued by financial insecurity, younger generations are eagerly awaiting a Great Wealth Transfer—or inheritance from their older relatives. The changing of the tides will likely take place by 2045 and be worth about $84 trillion, Boston-based market researcher Cerulli Associates projected in 2022.

But as boomers and the silent generation prepare to hand off assets and savings, wrinkles start to form. Expectations can be out of alignment, with Gen Z and millennial offspring anticipating to receive more than their elders say they expect to leave behind, according to Northwestern Mutual in ITS Harris Poll survey of more than 4,500 U.S. adults.

And most Americans (72%) report that they don’t feel they have enough financial confidence to manage a large influx of money by themselves, per a Citizens Bank survey of 1,500 U.S. adults. Millennials especially report feeling a lack of confidence in managing a potential future windfall. But a little bit of preparation beforehand could perhaps ease the minds of the privileged young beneficiaries of the Great Wealth Transfer.

When Wills Go Wrong

TO READ MORE:  https://www.yahoo.com/finance/news/warren-buffett-issues-warning-parents-174136443.html

The ‘Hermit’ Savings Rules: 8 Frugal Tips for Today’s Economy

The ‘Hermit’ Savings Rules: 8 Frugal Tips for Today’s Economy

Cindy Lamothe  Mon, November 25, 2024   GOBankingRates

When your personal finances combine with your personal space, your spending habits and savings account might be working a bit more harmoniously too. Consumer practices across the world have been altered significantly over the past few years — for obvious reasons and otherwise — in what economists have dubbed “the age of the hermit consumer.”

“For ‘hermit’ consumers, it can be really easy to make impulse purchases and overspend because of how easy and convenient shopping online is,” said Carter Seuthe, CEO of Credit Summit Consolidation. “Something that can be helpful to maintain a more frugal budget is just to define your expectations and priorities when it comes to the amenities you have.”

Whether it’s how you approach your visit to the grocery store or price-matching your favorite online retailers, the how, when and where you swipe your credit card has simply changed. If you embrace the hermit lifestyle and prefer your saving and spending to be done in a vacuum, below are some expert frugal living tips to thrive in today’s economy.

Embrace a DIY Mentality

“DIY is my new favorite hobby,” said Andrei Vasilescu, co-founder and CEO of DontPayFull. “It’s cost-effective, and YouTube is a great teacher. About 50% more people are getting into DIY now.”

Syed Lateef, business coach and CEO of SyedBNB, agrees. “We can all see it,” Lateef said. “The focus has shifted towards a more home-oriented lifestyle, and I can personally say that more people are embracing do-it-yourself (DIY) activities.”

He said this is a good thing because mastering basic skills for home and car repairs can lead to considerable savings. Simply put, it’s better to invest your time than a third of your paycheck every time you need some general maintenance or repairs done.

“Nowadays, the hundreds of online tutorials and resources makes it easier than ever to learn and perform these tasks ourselves,” he said, “reducing the need to hire professionals.”

Save Money by Cooking at Home

“The driving force behind the hermit economy isn’t entirely clear,” Lateef said. He said it could be due to the lingering hesitation for close-contact services, the increase in remote work or a shift in social values. Instead of dinner and a movie out, you can now meal-plan and binge on your favorite streaming service.

“What’s obvious, though,” he said, “is that consumers are now more inclined to spend on home-centric activities.”

As a result, he said, many followers of the FIRE (financial independence, retire early) movement have come to realize that frequent dining out can be quite costly. So, frugal individuals are embracing the art of cooking at home, experimenting with budget-friendly and nutritious meals.

He added, “Hermit consumers save money but also encourage healthier eating habits.”

Focus on Secondhand Finds

Repurposing secondhand or vintage items such as clothing or home decor is both economically and environmentally friendly. In the current economic climate, looking at secondhand alternatives before buying new is a wise strategy, Lateef suggested.

“I believe that the ‘hermit’ consumers are now placing more emphasis on sustainability because of the pandemic, so shops like thrift stores and online marketplaces are trending because of the treasure troves of affordable, yet quality items.”

In terms of frugality, he said, this not only helps save money but also aligns with sustainable practices by repurposing and recycling items.

TO READ MORE:  https://finance.yahoo.com/news/hermit-savings-rules-8-frugal-140043078.html

6 Valuable Everyday Items You Should Never Throw Away

6 Valuable Everyday Items You Should Never Throw Away

Justice Petersen  Sun, November 24, 2024 at 3:00 PM EST 3 min read

While it’s beneficial to declutter every once in a while, there are certain items around your home that, although they seem like everyday objects, can still hold significant value. Many seemingly worthless items may be better to sell, repurpose or recycle so you can help the environment, potentially make some extra money and use every item you’ve received to its fullest potential.

Listed below are six everyday items that you should never get rid of.

Empty Containers

Whether it’s glass jars, or stainless steel or tin cans, empty containers can last a long time and be used for various purposes besides their original use. These items can be repurposed as storage solutions for small household items, such as spices or craft supplies. They can also be reused for meal prep or storing leftovers. Additionally, certain containers can bring in a decent amount of money if you take them to a recycling program.

Unused Gift Cards

Many people stash away gift cards that have very little money on them. However, even these small balances can add up over time. By using these cards — or selling them on platforms that allow you to exchange or sell the unused balances on them — you can utilize these seemingly worthless items lying around your house.

Expired Coupons

Contrary to what one would expect, expired coupons may still hold value. Some retailers will honor an expired coupon within a limited timeframe or will offer similar discounts instead. Similar to unused gift cards, certain websites also allow the trading or selling of coupons, allowing financially savvy shoppers to get more use out of these items that would otherwise be thrown away.

Broken or Old Electronics

Though they may be broken or outdated, these electronics may be of some worth if you don’t throw them away. Some parts of old or broken electronics, such as circuit boards, batteries and certain metals, can be sold to electronics salvagers or people who enjoy fixing things up as a DIY hobby. Be sure to look into online marketplaces or recycling centers that will specifically buy electronics.

TO READ MORE:   https://finance.yahoo.com/news/10-valuable-everyday-items-never-130029354.html

19 "Don't Do It" Purchases

19 "Don't Do It" Purchases Older Adults Are Warning Millennials And Gen Z Not To Make

Alana Valko  Fri, November 22, 2024  BuzzFeed

We've all been let down by a purchase that didn't exactly meet our expectations.

And, in adulthood, buyer's remorse can sting a little harder — especially when those purchases become bigger and have more financial consequences.

Because none of us want to make the wrong bet, I asked older adults in the BuzzFeed Community to share the purchases they'd never recommend Gen Z'ers, Millennials, or any young adult make.

Here's everything they shared:

1."Don't buy extended warranties! Save your money. Over my 40 years of not buying them, there were only two times I might have been able to use one. Especially don't buy them on inexpensive items or on items like laptops where the technology changes so rapidly. Makes no sense."

2."Sort of a niche answer, but maybe someone will appreciate: Whole-life insurance is a rip-off. Super profitable for the company selling it. It's about 5x the cost of basic term life, and it comes with an investment account, but you can create the same setup yourself by buying the cheaper term life for 20% of the cost and putting the remaining 80% you saved yourself into your own investment account (retirement or whatever). You'll come out far ahead of where the whole-life policy would have gotten you."

3."Don't get hyped up by sales. They always tell you that it will end tomorrow, and it will, but the day after tomorrow, there will be another one. Pay when you're ready; prices will generally only go down (except for the new stuff). In some cases, be willing to go refurbished. You will often get something as good as the condition your new item would have been in after one month of usage."

Price tag showing a sale item originally priced at 179.00, now reduced to 129.00 at Manor. Includes barcodes and product codes

(Cont'd) "Fashion is idiotic. Looking trendy is expensive, and the only people you will lose as friends are the superficial ones (win-win). Everything trendy today will be out of fashion in 10 years or less, and this will rotate until the old fashions become the new ones again. Get clothing that is well made and comfortable for you, or at least the minimum needed for a work situation."

4."The latest tech device. Wait six months, and it will be cheaper. You may not even want it anymore, especially once the hype is over."

TO READ MORE:   https://www.yahoo.com/lifestyle/older-adults-sharing-purchases-dont-041603795.html

3 Brutal Money Lessons That No One Ever Told You About

3 Brutal Money Lessons That No One Ever Told You About

Heather Altamirano  Sat, November 23, 2024  GOBankingRates

Everyone has to manage bills, household expenses, taxes, and money, yet personal finance isn’t something most people are taught. Financial intelligence learned early can help avoid costly mistakes down the road, but according to Ramsey Solutions, only 26 states require high schoolers to take a course on personal finance to graduate.

Unless there’s someone giving guidance along the way, hard money lessons usually come from trial and error and are often learned too late.

Here are three brutal money lessons that are not talked about enough and how to avoid them.

Spiraling Debt

Americans are racking up more debt than ever. According to the Federal Reserve Bank of New York, consumers collectively owe $1.17 trillion in credit card debt, up 8.1% from last year. Spending can get out of control quickly, and too much debt prevents a comfortable retirement and a strong financial future.

“When you have more debt than you can handle, you often have to tap into your home equity or retirement IRAs to pay off the debt,” said Shelby Rothman, a financial advisor and founder of EnJoy Financial. “Some people are forced to lose their homes or go into bankruptcy, which can cause their credit scores to drop significantly.

 “I’ve seen many people with comfortable wages accrue debt larger than they can handle from buying expensive homes, luxury cars or motor homes. In addition to the debt these items create, they include extra expenses outside of the loan that the budget isn’t prepared for.”

To help avoid this pitfall, live within your means and create a realistic budget that isn’t credit card dependent.

“Understanding the full cost of ownership is the biggest way to prevent debt from mounting. Taking a loan out on an expensive motor home that comes with insurance, maintenance fees, and repairs can cripple your finances,” said Rothman. In addition, she believes it’s vital to plan for unexpected costs and mishaps by at least $1,000.

TO READ MORE:  https://www.yahoo.com/finance/news/3-brutal-money-lessons-no-170017457.html

4 Mistakes That Make You Feel Like You’re Living Paycheck to Paycheck

4 Mistakes That Make You Feel Like You’re Living Paycheck to Paycheck, According to Ramit Sethi

Marc Guberti  Fri, November 22, 2024  GOBankingRates

While it’s easy to come across statistics that show how many people are living paycheck to paycheck, Ramit Sethi provides various insights that suggest the opposite. It turns out people are doing better financially than what has been portrayed.

In a recent video, Sethi mentioned research that states 82% of individuals believe their finances are good or very good. Furthermore, the median American household has a $192,900 net worth and $8,000 stored in their checking and savings accounts.

Even with these optimistic data points, many people are still living paycheck to paycheck. Sethi presented common mistakes that make people feel like they have less than they really have. He also highlighted solutions that can help you feel better about your finances.

Lying To Yourself

Sethi started the video by mentioning the difference between not having enough money and making financial decisions. Some people who spend their entire paycheck each week allocate some of their cash toward tuition, a luxury car and other items.

Sethi went on to say that most people’s feelings about money do not match how they spend it. They may not feel like they have enough, but they are deploying their cash toward worthwhile expenses.

The “I Will Teach You To Be Rich” author provides an action step to address each mistake that makes you feel like you are living paycheck to paycheck. For this one, Sethi suggested creating a guilt-free spending account. After accounting for fixed costs, savings and investments, you can set aside some cash that you can spend as you wish.

This approach will allow more people to realize that they are using their hard-earned cash for discretionary expenses, which is a meaningful difference from living paycheck to paycheck.

You Don’t Have a ‘Financial Moat’

A financial moat offers a buffer of safety in case you lose your job. Sethi recommended setting up an emergency fund that covers three to six months of your expenses. For instance, if you spend $3,000 per month, you should build an emergency fund that has $9,000 to $18,000.

It’s important to keep this account separate from your checking and savings accounts. That way, you won’t mix up funds and can keep your finances more organized. Sethi’s action step for this common mistake is to gradually build your emergency savings. Even if you start at just $100 per month in your emergency savings account, it will grow over time. You can also capitalize on a high-yield savings account so your bank does some of the legwork for you.

TO READ MORE:  https://www.yahoo.com/finance/news/4-mistakes-feel-living-paycheck-170100438.html

8 Money Moves the Rich Make When Planning a Move

I’m a Financial Expert: 8 Money Moves the Rich Make When Planning a Move

Cindy Lamothe   Wed, November 20, 2024   GOBankingRates

When the wealthy plan a move, it’s not just about packing boxes — it’s a strategic financial event. According to experts, they often engage in meticulous planning to optimize their assets and liabilities during this transition.

GOBankingRates spoke with Dennis Shirshikov, head of growth at GoSummer and professor of finance at City University of New York, and Melanie Musson, finance expert with Insurance Providers, to discuss the money moves the rich make when planning a move.

“When wealthy people plan a move, they hire professional movers to package their items, pack them on a truck and unload them in their new house,” said Musson. “Wealthy people use their money to make updates and upgrades to their new house before they move in. They don’t have the financial constraint of needing to move in right away.”

Building Up Savings First

According to Musson, in advance of moving, wealthy people build their savings, so they can make a down payment and purchase a home without the contingency of selling their current house.

“Even though they’ll usually sell their old house, the need to do so won’t hinder their chances of getting their offer accepted for their new house,” she explained.

Purchasing Custom Furniture

“Wealthy people get custom furniture for their new house,” Musson said. “They don’t try to make their couch and chairs work in a new space.”

Instead, she said they purchase the right size and color to complement the new space.

Tax Optimization Strategies

One of the first steps, according to Shirshikov, is consulting with tax advisors to understand the implications of moving to a new state or country. For example, relocating from a high-tax state like New York to a no-income-tax state like Florida can result in significant savings.

“They might accelerate income or defer deductions to take advantage of more favorable tax rates post-move,” he added.

Reevaluating Investment Portfolios

“Wealthy individuals often reassess their investment portfolios to ensure they align with their new circumstances,” said Shirshikov.

He said this could involve liquidating certain assets or investing in local opportunities.

“I recall a client who, before moving abroad, diversified into international markets to hedge against currency fluctuations,” he said.

TO READ MORE:  https://finance.yahoo.com/news/m-financial-expert-8-money-140044746.html